Assembly Bill 1176 proposes significant changes to the funding structure for special education and general equalization aids in Wisconsin. The bill increases the funding distributed to school districts through the equalization formula by $445,949,400 for the 2026-27 school year. It also modifies the reimbursement rate for special education costs, establishing that, starting in the 2025-26 school year, the state will reimburse 60 percent of eligible costs after covering the full costs for children in hospitals and convalescent homes. This change aims to address the projected increase in eligible costs and improve financial support for school boards, independent charter schools, and other educational entities.

Additionally, the bill excludes any increases in special education reimbursement from the calculations used to adjust per pupil payment amounts for various school choice programs and independent charter schools. This means that any rise in special education funding will not affect the annual adjustments for per pupil payments starting with the 2026-27 school year. The amendments to the statutes include changing the language regarding the appropriations for special education and school age parents programs to a "sum sufficient" basis, ensuring that the funding aligns with the actual costs incurred.

Statutes affected:
Bill Text: 20.255(2)(b), 20.255, 115.882